Finance Are Assets the same as capital?

[Kingsley]

We all are agree that capital is a reserved wealth or set aside wealth used for the creation of further wealth in an economic definition. While in accounting capital are funds or money used in starting up a business venture, to generate profit.

Looking at both definition we realise that they are both referring to items used to start a business and generate more of the particular item or money. Now in capital we have two major element which include asset and liability. Of course we know liabilities are owings


On the other hand, assets are those items or property of business that brings about further wealth for the business, they could be fixed and/or current asset, fixed asset are land& building, premises, machinery etc while current asset are cash, bank, debtors etc. Asset has nothing to do with owings

what's your take ?

 

[Sotherefore]

I always believe that an asset is the amount of material possession you have ,if we are considering capital it is also an asset in the sense that it belongs to you, anything that belongs to you is your asset and the overall amount of assets you have if calculated together will makeup your net worth.

 

[IamDozzy]

There is a major difference between assets and capital. First of all, in a basic form, capital is the materials or amount of money needed to start a business. Example of capital could he seedlings for a farmer or a certain amount of money needed to establish a business. While Assets are material the business already owns which could be used as collateral when taking loans. Example of Assets include, office building, tractors and lots more.

 

[sincerem]

Assets is your total worth, your finance, your house, car, and other valuables make up your assets. While capital is the total amount you have for investment. Capital is still an asset cos it can be in form of money, money saved in the financial institution is an asset cos it has value. So when you save money, you'll have an asset.

 

[Chibson]

Capital and assets are quite related but I don't think they are the same thing. An asset may be regarded as a number of wealth you have in store such as land and other things that you may or may not have been converted into it's monetary value. I believe capital is mostly in monetary form or something you can use as a purchasing power whenever you want to venture into business or other things.

 

[Sherman198]

Well in my opinion, I don't think both are far different. Assets are like your properties, things you can invest in. Or that bring your money. Things you have as a source of wealth. And on other hand, capital is just in monetary form that you can perfectly use for investing in so many things..... Your money is your capital, it's also serve as the purchasing power.

 

[Josemendez]

Assets is different from capital. Assets are those things you have such as land , cars building which has monetary value as well. Capital is more of the money you have set outside for starting a particular business or project. It mostly money .
Assets has the tendency to appreciate or depreciate in value but not likely with capital unless it has been put into use.